HOUSE prices are expected to rise over the coming year but some towns and cities could still be in for a rocky few months.

The latest sunday express/ propertyforecasts.co.uk data reveals average values are on course to increase 2.5 per cent by September 2010.

However, Mandy Bradley, director of propertyforecasts.co.uk, has warned there will be differences depending on where you live.

“Northern regions are expected to top the poll with increases of more than six per cent while east Anglia may see reductions of 0.15 percent,” she says. “There will also be wide variations within regions.”

Where have prices risen?

Hardly anywhere. Detached houses in the south-west have nudged up 0.4 per cent (£1,358) to £309,427 over the month. elsewhere, the London market has seen the average value of flats rise by 3.7 per cent to £385,223.

Where have prices fallen?

Almost everywhere, and some of the paper losses are eye-watering. For example, detached homes in south- central areas have fallen 2.7 per cent (£11,085) to £388,213. The value of terraced houses in east Anglia, meanwhile, has fallen about £3,000 (1.8 per cent) to £168,575 since the beginning of August.

The economist’s view

Data from the council of Mortgage Lenders shows further signs of stabilisation in the mortgage market, with lending for both house purchases and remortgaging increasing in June, although the number of transactions is still historically weak.

According to CML economist paul samter, there are tentative signs that lending criteria is easing. “Low interest rates and realistic selling prices have helped generate an increase in transactions but there is some way to go before we reach normal levels of activity.”

The view of chartered surveyors

An increasing number of chartered surveyors expect prices to rise over the next three months, partly because the interest from potential buyers is not being matched by supply coming on to the market.

“The more positive news on prices may prompt more properties to come on to the market,” said Jeremy Lea, spokesman for the royal institution of chartered surveyors.

“If mortgage availability remains insufficient to meet the increase in buyer demand, then it is possible that prices may slip back again, especially if unemployment continues to rise and mortgage rates increase.”

Predictions

Houses in the North could enjoy price increases of more than six per cent over the next 12 months because of the low availability, according to Mandy Bradley.

“The autumn months look as though we may see some lower prices in many places,” she says. “However, this could well change closer to christmas.”

We launched the SundayExpress/Propertyforecasts. co.uk house price index in 2003 to end the confusion over conflicting surveys produced by rival building societies.

It uses the latest available official sales data from the Land Registry and more than 180 economic factors including interest rates, manufacturing output and unemployment levels supplied by propertyforecasts.co.uk to give an accurate picture.